Performance

Management Systems in Law Firms Group D 13

To identify the current processes in the law firms, we performed a primary research by conducting
telephone interviews with employees at different law firms. We talked to an employee in the biggest law
firm in India, Cyril Amarchand Mangaldas. We also talked to an employee working as a lawyer/legal
manager in Kotak Mahindra bank.
The research yielded the following details:

Current Process
• Two feedback sessions every year
o The company follows a bi-annual system where the performance of an employee is
evaluated every six months and a rating is given
• Evaluation at Junior Levels
o At the junior levels, promotion is almost certain (it is based on years of experience and
not on performance) and bonuses are capped
• Evaluation at Senior Levels
o At the senior levels, promotion and bonuses are totally dependent on performance.
There is no cap on bonuses.
• Bell curve not followed
o The rating is completely dependent on an individual’s performance and since the bell
curve is not followed it is possible for everyone to get a rating of 5
• Self-appraisal and Peer Review
o Every employee is supposed to fill a self-appraisal form. Peers give their inputs too. The
Partner’s role is just to approve the evaluation
Drawbacks with Current Process
Ø Infrequent evaluation
o Half yearly evaluation, lack of continuous feedback
o Deals may take long time to complete and the post deal feedback is informal
Ø Routine promotions at junior level
o Promotions in 1st 4 years are assured and range of salary increment is small and bonuses
are capped which leads to low motivation
o There is no differentiation between good, average and poor performers
Ø High turnover
o Lack of recognition leads to dissatisfaction, lot of demand for law firms and similar
training across firms makes replacements easy leading to high attrition and lateral hiring
o People also leave for further studies or individual practice with smaller pay but more
responsibility and recognition
Ø Low power of HR
o Hiring is done by partners, there are no HR interviews while recruiting
o HR is only involved in onboarding and training.
Future Recommendations
1. Employees must have a one-on-one meeting with their bosses at least once a month to get
feedback and work on the action items to improve performance.
2. Promotions at junior levels must be based on performance ratings and the variable pay must be
different based on ratings.
3. Award schemes like Best Performer of the Quarter/Year, BRAVO awards (every employee has
some points and can give an award using those points), open door policy
4. Apart from the department specific personnel, HRs act as generalists who will check the culture
fit and the hiring process will be complete.
5. End of project reviews drive productivity through process improvement and finding such
productivity gains might be the key to maintaining profitability.